A leader can be a manager, but a manager is not necessarily a leader. The work group leader may emerge informally as the group's choice. If a manager is able to influence people to achieve the organization's goals, without using his formal authority to do so, then he is also demonstrating leadership. This document discusses the roles and responsibilities of an effective leader in any organizational culture. Leadership and management are two words used interchangeably. However, these words actually describe two different concepts. Leadership is just one of the many resources a successful manager must possess. The main objective of a manager is to maximize the organization's production through administrative implementation. To achieve this, managers must use organizing, planning, staffing, directing and controlling, but a manager cannot just be a leader, he also needs formal authority to be effective. Without leading and managing, organizations face many threats. A manager is hired by the organization and given formal authority to direct the activities of others in achieving organizational goals. Therefore, leadership is an important part of a manager's job. However, a manager must also plan, organize and control. Leadership deals with the interpersonal aspects of a manager's job, while planning, organizing, and controlling deals with the administrative aspects (Bateman 2004). Leadership is about change, inspiration, motivation and influence. Management is more concerned with achieving the organization's goals and maintaining stability. A manager should plan, organize, lead and control, while a leader influences people through motivation, communication, group dynamics and discipline. The executive purpose of the manager is to channel the behavior of all staff to achieve the mission and goals of the organization, while at the same time helping them achieve their career goals (Leadership vs. Management, 2006). Leadership is a relationship based on mutual influence and common purpose between leaders and employees where both are brought to higher levels of motivation and moral development as they influence real and intended change in their organization (Chapman, 2005). Loyalty is important among leaders, and team members tend to be more loyal to their leaders than to their manager. This is partly because leaders accept blame when things go wrong, celebrate team/group accomplishments, and give credit where credit is due. Managers do not interact with their subordinates as much as leaders do because leaders do not have subordinates but followers (Chapman, 2005).